Huge Dental's Overlooked Core Assets: A Hidden Gem in China's Oral Materials Sector

Recently, Huge Dental updated its IPO prospectus for the Hong Kong stock exchange, disclosing its operational data for the full year of 2024 and the first half of 2025. In the first half of 2025, both revenue and net profit of Huge Dental declined compared to the same period last year, with a more significant drop in net profit. However, if we look beyond the short-term financial surface and delve into the industrial structure and the underlying assets of the company, we can identify Huge Dental’s key core assets. This dental materials enterprise, which has been deeply engaged in the industry for nearly two decades, has not only achieved import substitution in certain high-end material sectors but also possesses a product line spanning hospital dental departments, ample reserves of registration certificates/certifications, and the potential to expand into international markets.

The oral healthcare industry is divided into medical services, equipment, and materials, with dental materials serving as an indispensable core component. Every clinical procedure performed by dentists—including restoration, implantation, bonding, and prevention—relies on material support.

For a long time, China’s high-end dental materials market has been nearly monopolized by international giants such as 3M (USA), GC Fuji (Japan), Shofu (Japan), Dentsply Sirona (USA), and Ivoclar. These products have created critical bottlenecks, characterized not only by exorbitant prices but also by supply chain vulnerabilities. Although there are numerous domestic dental material enterprises in China, most are concentrated in the low-end consumables segment, with only a rare few capable of entering high-end clinical applications.

Huge Dental is one of the very few companies that have cultivated deep expertise in this field for nearly two decades, gradually establishing differentiated competitive advantages. Its core strengths are manifested in five key areas:

1. Domestic Registration Certificates and International Certification Reserves Build a Moat for Long-Term Growth

As of now, Huge Dental holds 36 Class II and Class III medical device registration certificates in China, the highest number among domestic dental material companies. Meanwhile, Huge Dental has 30 FDA-cleared products and 31 CE-certified products.

In the field of medical materials, each registration certificate/certification typically requires 5–10 years from R&D to widespread clinical adoption. Huge Dental possesses a substantial portfolio of registration certificates and certifications, indicating that the company has laid the foundation for significant product volume growth over the next five years or more. This accumulation, which trades time for strategic advantage, constitutes its critical core asset.

2. Potential for Cross-Hospital Dental Department Product Line Layout

Huge Dental’s product portfolio covers prosthodontics, implantology, endodontics, orthodontics, and pediatric dentistry.

In the international market, companies capable of providing cross-departmental coverage for hospital dental departments are predominantly industry giants such as 3M and Dentsply Sirona from the United States, and GC from Japan. Most other domestic enterprises tend to focus on single specialized areas. Huge Dental’s product portfolio, which spans multiple dental departments across hospitals, not only enhances its resilience against market risks but also signals its potential to evolve into a “comprehensive dental materials company.”

3. China’s Leading Impression Material Manufacturer Strengthens Customer Base and Brand Equity

In the current Chinese market, imported brands occupy the top three positions for a significant number of dental material products. Meanwhile, brands that rank in the top three also benefit from an extensive customer base and high customer stickiness.

In 2010, Huge Dental achieved mass production of its Meijia Yin elastomeric impression materials in China. After more than a decade of development, its domestic sales revenue surpassed that of well-known international brands in 2024, ranking first among domestic companies. Based on 2024 sales revenue, Huge Dental’s elastomeric impression materials also topped the list among Chinese brands in the global market. This has laid a solid user foundation for the future market entry of additional Huge Dental products.

4. Breakthroughs and Import Substitution Achieved in Key Basic Materials: Glass Ionomer Cement and Adhesives

Glass ionomer cement is a critical foundational material in dental restoration, long monopolized by brands such as Japan’s GC and Shofu. Huge Dental’s Meiyiting glass ionomer cement has achieved domestic substitution for imported products in this field, demonstrating significant potential for large-scale volume growth. This breakthrough not only marks a pivotal point in import substitution but also strengthens Huge Dental’s competitiveness against international rivals.

Currently, Huge Dental is making a strong push into the high-end market for dental adhesive materials. Adhesive materials are among the core components in prosthodontics, a segment long dominated by international brands such as 3M’s Single Bond Universal (8th-generation universal adhesive), RelyX Ultimate resin cement, RelyX U200, Filtek™ Z350 XT universal light-cured composite resin, Transbond XT (orthodontic adhesive), and Ivoclar’s Variolink N series veneer kits. Huge Dental’s independently developed products—including Meiyiting light-cured dentin adhesive, resin cements for luting, self-adhesive resin cements, Meitianguang light-cured composite resin, and light-cured veneer resin cement—comprehensively match the performance of mainstream international counterparts. These products have obtained China’s Class III medical device registration certificates, as well as U.S. FDA clearance and EU CE certification. These innovations not only hold significant potential for import substitution but will also effectively reduce treatment costs, alleviate the financial burden on patients, enable more people to afford and receive quality dental care, and provide strong support for improving overall oral health across the population. Notably, in the first half of 2025, Huge Dental’s sales revenue from resin-based adhesive materials increased by over 100% year-on-year. Having achieved the number-one market share in China for elastomeric impression materials after more than a decade of development, the company’s currently prioritized resin adhesive product line is poised to continue this upward trajectory.

5. International certifications for the product are gradually unlocking global markets

Globally, Huge Dental’s products have obtained certifications in more than 60 countries and regions, underscoring its strong international market influence and reflecting the strategic position it has established in the highly competitive dental medical device market, as well as its potential to expand into global markets. Huge Dental’s key overseas markets include Europe, the United States, and Southeast Asia; it remains competitive in both the European and U.S. markets and aims to become a leader in the Southeast Asian market.

According to Frost & Sullivan data, the global market for clinical dental materials is projected to grow from RMB 162.3 billion in 2024 to RMB 305.3 billion in 2030, representing a compound annual growth rate (CAGR) of over 10%. The Chinese market accounts for approximately 20% of the global total and exhibits strong growth prospects in terms of both market size and expansion trends.

Population aging, rising health awareness among residents, and the advancement of “prevention-first” policies are jointly driving long-term expansion in demand for dental care. Combining both medical and consumer attributes, dental healthcare is regarded as one of the few medical sectors capable of weathering economic cycles.

Within the entire dental industry chain, the materials segment features high barriers to entry and significant growth potential. International giants have long dominated the domestic dental materials market by leveraging their first-mover advantage, with foreign products currently accounting for approximately 70% of the market share in clinical dental products. Shandong Huge Dental Material Corporation is one of the few domestic enterprises poised to break this pattern and also possesses the potential to expand into international markets.

Based on the company’s historical performance, Huge Dental has demonstrated stable growth. The company was listed on the National Equities Exchange and Quotations (NEEQ) in 2015, filed for an IPO on the ChiNext board in 2021, and applied for listing on the Hong Kong Stock Exchange in 2025. With complete publicly disclosed financial data available from 2018 to the present, the company has maintained long-term, stable growth, demonstrating its ability to navigate industry cycles even during periods of volatility. According to public information, the short-term decline in performance during the first half of 2025 was primarily attributable to the combined impact of U.S. tariff policies and a reduction in orders following the strategic exit of a major U.S. customer from the relevant business segment, as well as increased professional service fees incurred during the Hong Kong listing process.

Notably, Huge Dental boasts ample cash flow, with its balance of cash and cash equivalents showing an upward trend. In the medical materials industry, cash flow is a critical indicator of a company’s sustainable operations; robust cash flow not only signifies high earnings quality but also provides a solid foundation for R&D and international expansion.

In the short term, Huge Dental’s performance has been under pressure due to external factors; in the long term, however, it has accumulated highly valuable core assets in the “hidden track” of dental materials.

Against the backdrop of rapid global market growth and accelerated domestic substitution, Huge Dental is poised to leverage its advantages—including a product portfolio spanning hospital dental departments and both domestic and international certifications—to gradually break the foreign monopoly and achieve a leap from “domestic substitution” to “international high-end.”

Huge Dental, perhaps standing at the starting point of valuation reshaping.